+6% - Sonae

1
Luis Reis | Chief Corporate Center Officer

AGENDA
2

INSIDE SONAE WILL...
Allow you to interact with Sonae's Top Managers
and get a better knowledge about our retail formats
Overview presentation
Guided visit to Gaia Shopping
Continente (Hyper)
Worten (Consumer Electronics)
Guided d visit it to Modelo
Modelo (Super)
Modalfa (Fashion)
Presentation CEO Sonae MC - key performance & strategic highlights
Lunch
Presentation CEO Sonae SR - key performance & strategic highlights
Guided visit to Norte Shopping
Zippy (Fashion)
Modelo (Super)
SportZone (Sports)
Presentation CEO Sonae & CEO Sonaecom
End of Event
3

SONAE
AT A GLANCE
4

WE ARE
A RETAIL COMPANY
• Market leader in food and specialized retail formats
• With Board control of a Shopping Centre and a Telecommunications business
100%
RETAIL
100%
100%
SONAE
50%
53%
100%
SONAE MC
Food Retail
Hypers
and Supers
SONAE SR
Specialized
Retail
Non-Food Retail
formats:
sports, fashion
and electronics
SONAE RP
Retail
Properties
Retail real
estate assets
SONAE
SIERRA
Shopping
Centres
Shopping centre
developer, owner
and manager
SONAECOM
Telco
Integrated
telecom provider
Investment
Manag.
Business with
M&A activity:
Insurance, Travel
and DIY
CORE
BUSINESSES
RELATED
BUSINESSES
CORE
PARTNERSHIPS
ACTIVE
INVESTMENT
5

WITH A STABLE
SHAREHOLDER STRUCTURE
Reference shareholder, Efanor, a family holding company
MEDIUM/LONG TERM ORIENTED
Others
33.5%
Efanor
53%
Free float
Bestinver
2.1%
Banco BPI*
of circa 47%
8.9%
Fundação Berardo
2.5%
*including BPI equity swap
6

STRATEGIC
DIRECTIONS
7

WHERE WE ARE GOING
AND WHY?
International
Expansion
The main strategic priority
Dilution of country risk
New growth avenues
Diversifying
Investment
Style
Adopt the most appropriate
investment style
Wholly owned businesses
Majority stakes
Partnerships
Minority stakes
Property: rent instead
of owning
Leverage
the exceptional
asset base
in Portugal
Innovate
Generate new businesses
Strengthen our competitive
position
8

WHAT ARE OUR
STRATEGIC AMBITIONS
ROE > 15%
25% OF TURNOVER
AND 35% OF ASSETS
ABROAD
TURNOVER
CAGR > 10%
~ 1/3 OF CE
IN MINORITY STAKES
OR PARTNERSHIPS
WITHOUT FULL CONTROL
9

WHAT ARE OUR
STRATEGIC AMBITIONS
CAPITAL LIGHT
STRATEGIES
To implement capital light growth
strategies and look
for opportunities to release
capital employed
10

WHAT ARE OUR
STRATEGIC AMBITIONS
REACH INVESTMENT
GRADE PROFILE
To insure access to debt
in competitive conditions
and/or alternative
financing solutions
11

HIGHLIGHTS
OF THE DAY
12

REGARDING SONAE MC,
YOU SHOULD RETAIN:
Strong value proposition of each format
• Brand recognition
• Prime locations
• Value retailing proposal
• Price & diversity positioning
• Loyalty card
• Own brand
• Space optimization leveraging on excellence of logistics
Distinctiveness of hyper format compared to peers
• High penetration of private label offering
• Low weight of non-food
• City centric
The winning concept of our supermarket format
• Food sales area below 2,000 m 2
• Cornered by: consumer electronics + fashion
• "Privately owned" shopping centre for medium sized cities
The continuous leverage of our asset base
• Exploring new business opportunities in retail (eg: book.it; Well's; Continente ice)
13

REGARDING SONAE SR,
YOU SHOULD RETAIN:
14
Leadership of the Worten concept
• Market leader in white goods and consumer electronics (135 stores)
• Debut entry in Spain in 2008 (19 stores)
• Positioning of low price, quality of service and product range
• Combining super and mega stores of around 500 m 2 and 1,500 m
2
Distinctiveness of the SportZone format
• Market leader in white sports goods (75 stores)
• Entry in Spain in 2008 (22 stores)
• Offering known brands with own brand options
• Average sales area of 1,000 m 2
Uniqueness of the Zippy format
• Still young format in Portugal (36 stores)
• Entry in Spain in 2009 (20 stores)
• Offering a range of clothing and accessories for children
• 90% of offer being controlled label
• Average sales area of 350 m 2
Strong position of Modalfa in the Portuguese fashion market
• With attractive lines of clothing, shoes and accessories
• Average sales area of 500 m 2

REGARDING THE RETAIL
PROPERTIES OWNED,
YOU SHOULD RETAIN
IT IS AN IMPORTANT SOURCE OF CAPITAL
15
RATIONALE
• Manage Assets more proactively
• Build Retail Real estate competencies
• Partial release of invested capital
INVESTED CAPITAL (end 1H10)
1.5 Billion Euros (Net book value)
2 SALES & LEASEBACK TRANSACTIONS COMPLETED
Azambuja logistics platform
Yield - 7.62% | Value - 33.2 million € | Capital gain - 7 million €
2 Modelos stores
Yield - 7.32% | Value - 12.2 million € | Capital gain - 3 million €
Currently underway
Sales & Leaseback of 20 Modelo stores
HIPERMARKETS - CONTINENTE
34 stores owned | 85% total sales area
SUPERMARKETS - MODELO
100 stores owned | 82% total sales area

OVERALL, AT THE END
OF THE EVENT,
YOU SHOULD
Know our retail portfolio
Identify the strengths of our offer
Recognize our leader positioning
in Portugal
Understand our strategic ambitions
for the retail operations
16

SONAE MC

VISION
leadership of the Portuguese
food based retail market
… in
… in
… in
… in
market
share
business
best
terms
of client
corporate
responsibility
practices orientation terms
1.8x2 nd player
3x3 rd player
international
profitability
benchmark
Continente
elected “the
most trusted
brand”
reference
in community
involvement
programs
+ 1.5 p.p.
of market share
Ebitdar > 9,5%
8 th consecutive
year
actively
participates with
>1,000 institutions
2

BUSINESS
OVERVIEW
Store portfolio
Sales area (’000 m2)
Turnover
M€
+6%
EBITDA
M€
+6%
+36
2,930
3,106
187
199
492
528
531
1,428 1,517 +6%
69 79 +14%
2008 2009 2010e
2008 2009 2010e 2008 2009 2010e
3
1H figures
2H figures

KEY ACTION
DRIVERS
CONSOLIDATE LEADERSHIP
POSITION IN PORTUGAL
REINFORCE STATE OF THE ART
BUSINESS PROCESSES
DEVELOPMENT OF INTERNATIONAL
GROWTH AVENUES
4

KEY ACTION
DRIVERS
CONSOLIDATE LEADERSHIP POSITION IN PORTUGAL
Coverage of the Portuguese market
and consolidate market leadership
Selective
Continente
t
and Modelo
expansion plan
with assured value
creation
Smaller Modelo
expansion
program
for middle tier
Portuguese cities
Reinforcement
of convenience
format for major
urban areas
5

KEY ACTION
DRIVERS
CONSOLIDATE LEADERSHIP POSITION IN PORTUGAL
Explore adjacent business opportunities
leveraging on extensive experience
and know-how
Roll-out
of tested concepts
• Bom Bocado
• Well´s
• Book.it
Development
of new growth avenues
6

KEY ACTION
DRIVERS
CONSOLIDATE LEADERSHIP POSITION IN PORTUGAL
Leveraging g on the value and success
of the loyalty program
Number of clients
with loyalty card
2008 2009
2.8 million 2.9 million
2010e
>3.0 million
% of sales
associated with card
83% 84.5% >86%
7
NEW TECHNIQUE OF USING CLIENT INFORMATION:
‘CUSTOMER CENTRICITY RETAIL’

KEY ACTION
DRIVERS
REINFORCE STATE OF THE ART BUSINESS PROCESSES
Key issue:
International sourcing
• International procurement,
quality control, administrative
and logistic management
• Since 1994
• Recurrent contacts
in 50 countries
• Dedicated offices in China
and Brazil
• ~80.000 sku´s • Sonae MC with 14%
and ~2.000 suppliers
of international sourcing
• 700 M€ of global imports
for Sonae group
8

KEY ACTION
DRIVERS
REINFORCE STATE OF THE ART BUSINESS PROCESSES
Key issue:
Private labels
#Own References and % FMCG Sales
2,100
20%
2,400 2,500
26%
23%
1H08 1H09 1H10
9

KEY ACTION
DRIVERS
REINFORCE STATE OF THE ART BUSINESS PROCESSES
Key issue:
Resource optimization
+1.2 12
Store costs
gains (p.p.)
• Operational efficiency
• Cost control
• Stock optimization
+1.0 EBITDA
gains (p.p.) p 1H10
VERSUS
1H08
10

SONAE SR
STRATEGIC DEVELOPMENT
PROGRAM
PORTUGAL
Consolidate leadership position
with improving profitability
INTERNATIONAL
Reinforcement of the spanish market presence
Strong push towards internationalisation
2

SONAE SR
KEY ACTION DRIVERS
in Portugal
CONSOLIDATE LEADERSHIP
Coverage of the
portuguese market
with the current
formats' portfolio
and consolidate
market leadership
Continue to use
Portugal as a test
plant for new formats,
leveraging on a strong
management team
and know-how in Retail
Manage the business
in Portugal
as a sustainable cash
flow generator
3

SONAE SR
2010 DEVELOPMENTS
in Portugal
STORE NETWORK (’000 M 2 )
TURNOVER (M€)
EBITDA (M€)
1H 2H
+16%
248
213
250
227
414
+10%
988
898
+21%
71
58
453
+10% +10% 14 19
+31%
Y08 Y09 Y10e Y08 Y09 Y10e Y08 Y09 Y10e
4

SONAE SR
KEY ACTION DRIVERS
abroad
WHY GROW
INTERNATIONALLY?
The Portuguese market is small and, for the time
being, within a difficult economic framework
Importance of scale
Quality and distinctiveness of the concepts
5

SONAE SR
KEY ACTION DRIVERS
in Spain
REINFORCEMENT
OF THE MARKET PRESENCE
Of Worten, , building Of SportZone, , leading Of Zippy, exploring
a strong and distinctive
position in the iberian
market
the reinforcement of
the internationalisation
process pocess
the distinctiveness
of the concept in both
geographies
19 stores 22 stores 20 stores
47,000 m 2 29,000 m 2 7,000 m 2
~150 M€ turnover ~30 M€ turnover ~10 M€ turnover
6 End of September network figures 12 months till 1H2010 turnover figures

SONAE SR
KEY ACTION DRIVERS
in Spain
Break-even:
EBITDA 2012
EBIT 2013
IMPACT OF SPANISH BUSINESS
EBITDA (M€)
1H figures
-12
-23
-12
7
Y08 Y09 Y10e Y11e Y12e

SONAE SR
KEY ACTION DRIVERS
STRONG PUSH TOWARDS
NEW MARKETS
Build skills and experience in order to develop
the international identity of the formats' portfolio
Enter into new countries
Configure an international development model
based on franshising and joint venture
as means to accelerate growth
8

SONAE SR
KEY ACTION DRIVERS
STRONG PUSH TOWARDS
NEW MARKETS
9

SONAE SR
2010 DEVELOPMENTS
in the international front
STORE NETWORK (’000 M 2 )
TURNOVER (M€)
EBITDA (M€)
1H
2H
+380%
144
+65%
34
Y08
56
39
Y09
77 30 60
101
+97% +70% -6
-23
-12 -12
Y10e
Y08 Y09 Y10e Y08 Y09 Y10e
+0%
10

IMPORTANT ACHIEVEMENTS
IN ORDER TO FULLY
IMPLEMENT SONAE SR MISSION
Develop World Class
International specialized Retail
formats, in a unique
and innovative way, surprising
consumers with an excellent
price/quality ratio
11

Ângelo Paupério I Executive Board Director Sonae

WE CONTINUED
TO DELIVER
OUR VALUE
CREATION MODEL
2

IN 1H10
Sonae achieved
very positive evolutions
on the majority
of its businesses

IN 1H10
TURNOVER
EBITDA
NET DIRECT PROFITS
+6% +10%
+89%
Sonae continued to …
deliver profitable
growth, while pursuing
its internationalization
strategy
reinforce it´s capital
structure
increase equity
holders profitability
4

WITH GOOD
PERFORMANCE
OF THE CORE
PARTNERSHIPS
5

SONAE SIERRA
EBITDA UP BY 10%
AND DIRECT PROFITS INCREASED
BY 46%
EBITDA (M€)
DIRECT PROFITS (M€)
53
+10%
58
19
+46%
28
• Occupancy rate = 96% (+2pp )
• Total of rents collected
(fixed and variable) up 3%
on a LfL basis
• Expansion restricted in Europe
but partially offset by greater
development activity in Brazil
1H09 1H10 1H09 1H10
EBITDA PERFORMANCE REFLECTING ONGOING COST CUTTING MEASURES
AND OPERATIONAL IMPROVEMENTS
6
INDIRECT PROFITS ALREADY SHOWING SIGNS OF STABILIZATION/INFLEXION
OF THE NEGATIVE TREND
Management figures

SONAECOM
EBITDA GROWS 9%
AND CASH FLOW IS POSITIVE
RESULTS CONTINUE TO SHOW
A FAVOURABLE EVOLUTION
MOBILE SEGMENT CUSTOMERS (M)
EBITDA (M€)
327
3,450 3,469
3,269 3,327 3,433
100
91
69
+9%
+6%
2Q09 3Q09 4Q09 1Q10 2Q10 1H08 1H09 1H10
• Growth in mobile customers and customer revenues
• 30% share of fibre market despite inexistence of regulation
• Cost control policies
• Strict investment management
7

AND OVERALL
STRONG
CONSOLIDATED
PERFORMANCE
AS OF 1H10
8

TURNOVER GREW BY 6%
WITH RETAIL UNITS MAKING A SIGNIFICANT
CONTRIBUTION TO THIS PERFORMANCE
GROWTH
+6% +10% +70% +7% +6% -6% +9% +11% +6%
453
101
64
95 450
99
69 -73
1,517
2,777
2,608
MC SR (PT) SR (SP) RP SIERRA S COM IM PS E&A 1H10 1H09
Sonae MC and Sonae SR growing 9%
International business approaching 20% of Sonae SR
turnover
9
YTD 1H10; Million euros

EBITDA INCREASED BY 10%
GENERATING A MARGIN OF 11%
RETAIL UNIT MARGINS WERE SUSTAINED
BY GAINS IN MARKET SHARE AND IN EFFICIENCY
GROWTH
+14% +31% n.m +2% +9% +9% +10%
100 1 5
45
79
19 -12
58
295 305 277
MC SR (PT) SR (SP) RP SIERRA S COM IM E&A RECURRENT
Total Total
EBITDA 1H10 1H09
EBITDA includes capital gains of 10m€ from Sonae RP
with the sale & lease back of retail real estate assets
(Modelos of Póvoa de Varzim and Rio Tinto; Azambuja logistics platform)
10
YTD 1H10; Million euros

DIRECT NET PROFITS INCREASED BY 89%
REFLECTING STRONG EBITDA PERFORMANCE AND
A SIGNIFICANT FALL IN NET FINANCIAL EXPENSES
305 -146
-10
-51
1 -25
-19 55
+89%
29
EBITDA D&A P&I Financial
Results
11 YTD 1H10; Million euros
Other
Income
Taxes
Minority Direct NetDirect Net
Interests Profit
1H 10
Profit
1H09
• Considerable better net financial activity due
to the reduction in average debt in 1H10 and the lower
level of the interest rates
• Higher taxes in retail formats and Sonaecom

INDIRECT PROFIT REFLECTS
A SIGNIFICANT SLOWING DOWN OF YIELDS
4
-9 -10
-21
-7
-13
-3
-10
-36
12 EoP quarterly data; Million euros
-65
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
• Relatively stable yields across all the countries where Sierra
is present, with the exception of Portugal
• The negative value was driven by an adjustment on deferred
tax liabilities arising from the recent increase in corporate
income tax in Portugal

INVESTMENT TOTALED 191M€
REFLECTING THE ADOPTION OF A CAPITAL
LIGHT STRATEGY
INVESTMENT
Million Euros
386
-35%
293
191
Sonaecom
31%
Sonae MC
21%
Sonae SR
22%
Sierra
17%
Sonae RP
8%
1H08 1H09 1H10
• Continuous store network development and modernization
in Portugal
• Strong push to increase presence in the Spanish market
• Ongoing investment in the expansion and coverage
of the mobile network
•Development of 2 shopping centres scheduled d to open in 2011
13

AN APPROPRIATE CAPITAL STRUCTURE
IN EACH BUSINESS TO SUPPORT FUTURE
GROWTH PLANS
Shopping centres
and Holding
Loan to Value
47.3%
46.1%
47.2%
2Q09 3Q09 4Q09 1Q10 2Q10
Sierra
14

MAJOR IMPROVEMENT
IN DEBT RATIOS
10.9x
EBITDA/INTEREST
Consolidated figures
7.8x
9.7x
4.9x
4.7x 4.5x
4.7x
4.2x 4.1x 3.9x 4.0x
5.3x
4.5x
6.2x
5.1x
6.0x
7.1x
7.9x
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Withoutt Sonae Sierra
With Sonae Sierra
15

MAJOR IMPROVEMENT
IN DEBT RATIOS
NET DEBT/EBITDA
Consolidated figures
5.6x
4.8x
5.3x
4.6x
5.1x
4.2x
5.6x
4.8x
5.3x
4.5x
5.1x
4.2x
4.5x 4.8x
3.6x
4.1x
4.6x
3.8x
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Withoutt Sonae Sierra
With Sonae Sierra
16

WE CONTINUED
TO IMPROVE
OUR RETURN ON EQUITY
21.2% 21.2%
15pp
11pp
6pp 10pp
Direct Income contribution to ROE
ROE
Indirect Income contribution ti to ROE
17pp
18pp
13.9% 15.1%
16pp
12.9%
14pp 13pp 14pp
15pp
11pp
11pp 6.8%
8.1%
5.0%
3pp
2.8% 2.4%
0pp
-7pp
-7pp
-4pp
-3pp
-10pp -11pp -11pp
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
17

Paulo Azevedo I CEO Sonae

OUR
STRATEGIC
DIRECTIONS
2

CORPORATE STRATEGIC
GUIDELINES FOR FUTURE GROWTH
Main goal is to transform Sonae into a large
multinational i l retail corporation
GO INTERNATIONAL
• Main growth avenue
• Use concepts believed
to be distinctive
• Leverage
our competencies
DIVERSIFY
INVESTMENT STYLE
• Partner to complement
competencies and costs
• Adopt new expansion
models: joint-ventures
franchising and technical
partnerships
• Capital light approach
to property: rental
instead of ownership
LEVERAGE
EXCEPTIONAL ASSET
BASE IN PORTUGAL
• Continue to explore new
business opportunities
in retail
• New ventures should have
potential to become
a large business in
the medium term
and with a path
to internationalization
3

OUTLOOK
4

OUTLOOK
FOR RETAIL
The strength of our retail value proposition,
clearly l demonstrated d on our past performance,
allows us to be confident
on future growth
We are “Value
Retailers”, with a low
and competitive
price offer
Price positioning
explains continuous
gains in market share
despite a tough
consumer market
We have proven
our ability to manage
successfully
in challenging
environments
5

OUTLOOK
FOR RETAIL
… with consolidation of market share
and high h levels l of profitability at Sonae MC
Turnover
M€ M€
+6%
2,930
3,106
EBITDA
187
+6%
199
Sonae MC being one
of the few players
gaining market share
in 2009 (~1.3pp 1 )
and 1H10 (~1.5pp 1 )
1,428 1,517 +6%
69 79 +14%
Y08 Y09 Y10 Y08 Y09 Y10
1H
1 Source: Nielsen & TNS consumer panels
6

OUTLOOK
FOR RETAIL
… and with growth and profitability,
in Portugal, at Sonae SR
Turnover
EBITDA
M€ M€ …enabled by
+10%
a reinforcement
1H
of position of the
988
+21%
898
leader formats (+2pp
71
Worten; +1pp
58 SportZone) (1)
and continuous growth
in market share of the
younger formats
414 453 +10%
Y08 Y09 Y10 Y08 Y09 Y10
14
19 +31%
1 August YTD; according to GFK and to
internal researches)
7

OUTLOOK
FOR RETAIL
Sonae will emerge from this recession
as a stronger company and with
a strengthened long term growth potential
Market leader formats
Continente, Modelo, Worten, SportZone,
Zippy and Well’s in Portugal
Maintain gains of market share and profitability
• Value oriented offering
• Food sector as non-cyclical
• Weakness of high cost/low efficiency retailers,
reinforced with the economic crisis
• Continuous improvements in operational
efficiency
Lower market share formats
Worten, SportZone, Zippy in Spain
and Loop, Bom Bocado, book.it in Portugal
Consistently gain market share
• Value oriented offering
• Resilience on the back of the distinctiveness
of the concepts
• Leverage on Sonae’s competences
and strong asset base
8

OUTLOOK
FOR RETAIL
Progress on Internationalization
in line with planned
Strong expansion in Spain with
Worten, SportZone and Zippy
• Expecting to end the year with additional
60 thousand m2 of new sales area
(~2x the area in YE 2009)
• On track to achieve EBITDA break even,
on Spanish operations, by 2012
Angolan market under analysis
Expansion of Sonae SR business
frontiers, with opening more than
100 stores, until 2014, in 10 countries
• Worten - Joint Venture Contract
for the Canary islands
• SportZone - Joint Venture Contract
for the Canary islands
• Zippy - Franchising contracts for Canary
Islands and Middle East
Attentive to international
expansion opportunities
9

OUTLOOK
FOR RETAIL
Sonae RP to free up
invested capital
Execute an asset
monetization plan
to release circa
50% of invested
capital freehold
ownership of food
retail sales area
Focus on Asset
Management
Seek Property
Development
opportunities
10

OUTLOOK
FOR CORE PARTNERSHIPS
SONAE SIERRA
Grow in promissing markets:
• Speed up expansion in Brazil
• Reinforce emergent markets
presence and services to third parties
Continue to make operational
improvements in spite of the fall
in consumption in certain sectors
in Europe
SONAECOM
Manage cash flow and optimize
operational efficiency
Ensure continuous market share
gain in the mobile segment
Reinforce SSI’s International presence
and grow client base through new
services and sectors
Prepare the company for European
recovery in selected countries
(freeing up capital and starting
up with the best projects)
11

SONAE
AN ATTRACTIVE
INVESTMENT
OPPORTUNITY
• Confirmed growth in Turnover and Profitability
in the face of adverse macroeconomic conditions
• Value proposal offer adapted to market demands
• A clear and ambitious strategy that will enable
for future growth and value creation
• Strong culture and values
• High quality management teams
12